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Transportation Asset Management and Its Quantisation Regarding Benefits of Ancillary Aijaz Ahmed Scholar (M .Tech-Transportation Engg. (Civil)), Jodhpur National University-Rajasthan. Abstract: As asset management continues to gain ground in the transportation industry, many agencies are looking to reach beyond pavement and bridge management to include other ancillary infrastructure in their systems. Ancillary transportation assets are those lower-cost, higher-quantity infrastructure, such as traffic signals and guardrails, that work together to improve the overall performance of the transportation (and specifically, highway) system. For the most part, these assets are directly related to improving the safety of roadways; however, they play an integral role in relation to other performance measures such as mobility. As agencies work to incorporate ancillary transportation assets into their existing systems, many may benefit from prioritizing the different asset classes for inclusion, particularly where there are limited funds for the development of formal asset management programsThe purpose of this thesis is two-fold: first, to synthesize the current state of practice of managing ancillary transportation assets, including the identification of data needs and costs for developing systematic capabilities to manage these assets; and secondly to assess the opportunities for quantifying the benefits of asset management programs in order to make a business case for their use. This work focuses on ten main asset classes selected from a review of asset management literature: culverts, earth retaining structures, guardrails, mitigation features, pavement markings, sidewalks & curbs, street lighting, traffic signals, traffic signs and utilities and manholes. Most of these assets are usually classified as roadway safety hardware assets and thus may be included in an SMS. In addition, these assets are typically managed at the state level with the exception of utilities and manholes that are managed at the local level. The work also considers data, which is an information asset. Keywords: Transportation Asset Management (TAM), PMS, PQI, Safety Management Systems. practice Of systematically managing the assets that make up I. INTRODUCTION these systems to keep their performance at or above Transportation Asset Management (TAM) is a acceptable levels of service for longer periods of time. Over the past fifty years, it has become apparent, as concept that continues to gain ground in agencies as a decision-making tool for capital investment and the transportation infrastructure systems age and funds become maintenance, rehabilitation, and replacement of more and more limited, that a new paradigm of asset transportation assets, and as a core business process for management has to be adopted to help allocate limited broad agency decision making. Although the term asset resources more effectively and efficiently in order to keep management has been used indifferent contexts by different infrastructure assets functioning at the highest level possible. agencies, all uses tend to have the same objective of As a result, many transportation agencies have established upgrading, preserving and maintaining infrastructure over some form of asset management capability such as Management Systems (PMS), Bridge the lifecycle. According to the American Association of Pavement State Highway and Transportation Officials’ (AASHTO) Management Systems (BMS) and Safety Management Subcommittee on Asset Management, “Transportation Asset Systems (SMS). The genesis of Pavement management Management is a strategic and systematic process of systems was the Association of American State Highway operating, maintaining, upgrading and expanding physical Officials’ (AASHO) Road Tests in the late 1950s in Ottawa, assets effectively throughout their lifecycle. It focuses on Illinois where experiments were designed to establish the business and engineering practices for resource allocation relationship between structural designs and expected and utilization, with the objective of better decision making loadings over pavement life. The data from these tests were based upon quality information and well-defined objectives” applied to develop the first models linking pavement 1)With growing demands for infrastructure systems, serviceability to distress data, one of the first elements of continuing deterioration of these systems, And increasingly PMSs. The primary impetus for the development of BMSs scarce funding, there is a growing need to develop the has been the implementation of regulatory requirements to

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improve the stewardship of bridges as a result of the critical nature of bridge failure, as well as the costs of replacement. SMSs seek to incorporate safety assets (such as roadway lighting, traffic signals, earth retaining structures and guardrails) as key components in all transportation infrastructure-related decision-making processes. The use of SMSs in transportation agencies has been limited, perhaps as a result of the rescinding of requirement to have such systems by the 1995 National Highway System Act(4). However, a few Departments of Transportation (DOTs) are still using SMSs, most having developed them prior to 1991 when the short lived Federal mandate to have them occurred. Although the cost to build and operate these safety assets may not be as high as that for bridges and pavements, they are critical to the safe and effective operation of the transportation system. Additionally, the rate of failure of some of these assets might below; however, the consequences of their malfunction could be fatal. There is thus a need for an asset management system for these and other ancillary assets that facilitates more effective budgetary prioritization. To develop such a system, however, requires making a business case for expending the dollars necessary to collect data and develop analytical capabilities for managing these assets more systematically. Furthermore, when the decision has been made to manage these assets systematically, which asset to begin with may be unclear, given the extent of available options. Quantified benefits and costs can influence which assets are prioritized for formal management, when considered with other criteria. II. LITERATURE REVIEW The literature review conducted for this research was primarily focused on reviewing the practices of transportation agencies, both domestic and international, in an attempt to document the state of the practice regarding the management of the eleven classes of assets. The literature revealed that there is at least one agency in the United States managing each of the eleven categories of assets being considered in this work. However, no single agency was identified to have an asset management program or programs in place for all eleven asset classes. In addition, most of these efforts seemed to be limited to the initial stages of developing more comprehensive asset management programs. These stages include the development of asset inventories, some condition assessment and information management. Overall, 64 agencies (34 state transportation departments, 11 local county and city agencies and 19 international agencies) were

identified through a literature review as having some activity in ancillary transportation asset management. A chart showing the specific assets managed by each agency is provided in Appendix A; however, Figure 2.1 shows the percentages of the agencies identified that manage each of the asset categories. As shown, culverts are the most common assets managed by about 50% (32) of the agencies identified. This is followed by traffic signs and then pavement markings. Culverts are managed as a result of some agencies including them (and other structures) in their Bridge Inventory Systems; however, according to Davidson and Grimes culverts are not given the required attention they deserve, even with the introduction of the Federal Highway Administration (FHWA) voluntary Culverts Management System in 2001. The prevalence of signs and pavement marking management systems, on the other hand, could be attributed to FHWA legislative mandates for retro reflectivity. With the lack of such directives pertaining to the rest of the asset classes, few agencies have included them in their management systems.

FIGURE 2.1 Assets managed by agencies as identified from literature review.

FIGURE 2.2 Comparison between literature and survey for assets managed.

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III. DATA NEEDS, DATA COLLECTION COSTS & ANALYSIS TOOLS Effective planning of a transportation asset management program includes an assessment of the data needs, costs and analysis tools that are needed to run a successful program. According to a study conducted by Markow on behalf of the National Cooperative Highway Research Program (NCHRP), agencies often lack the necessary data to complete their management systems. In addition, a lack of standardized measurement methods of service life has created challenges in data coordination and compilation for asset management. A 2008 study by Li and Madanu further supports this finding of a deficiency in asset service life evaluation methods. Although data collected by agencies with asset management programs vary, they generally include standard inventory data (location, type, etc.) and some attribute data relating to the condition and operational performance for the specific asset. The analysis tools employed in asset management systems should enable effective decision making and planning. Agencies have employed various analysis tools according to their specific needs. For example, in 2008, the City of Clearwater, FL implemented the Oracle Utilities Work and Asset Management module to “gain a comprehensive view of [their] infrastructure assets to help enhance planning, streamline operations and contain costs. Oracle database tools are, arguably, the most common advanced asset management analysis tools utilized by many other agencies, such as, the California DOT (Caltrans), which used the Oracle Road Feature Viewer in 2008. In addition, many states have developed individualized software systems to manage assets based on their needs, as seen in Alaska and Ohio DOTs efforts to manage their culverts and other drainage infrastructure. Regardless of the existence and use, albeit limited, of database and analysis tools which could inform data-driven decisions, agencies often employ historical data, political input and professional judgment in determining asset service-life estimates and in creating their operating budgets. Although these less quantitative approaches may be common, several agencies are considering or investing resources in data collection for more systematic decision making for their assets. In order to fully develop a business case for any asset management system, it is important to know the costs of running and maintaining the system. However, there has been very little documentation of data collection costs for developing asset management programs. Hensing studied several roadway safety hardware asset management systems

in 2005 and estimated that the New Mexico Road Feature Inventory (RFI) system had an initial cost of $2 million with an additional $500,000 to complete the acquisition of data that was missing from the initial process. Essentially, this was the only information found on data collection costs in the asset management literature. Undoubtedly, identifying the costs for developing and operating asset management programs continues to be an important research need with practical implications for agencies that want to prioritize formal asset management of ancillary assets using economic principles. IV. BENEFITS OF ASSET MANAGEMENT Although the practice of asset management has spread throughout public works and other infrastructurerelated departments throughout the United States and the rest of the world, there are several barriers to implementing asset management programs, especially for ancillary assets, which are seemingly, the “less important” assets. One of the main barriers to the success of these programs is the cost associated with their development and implementation. In order for an agency to justify an investment in an ancillary asset management system, there needs to be evidence that the benefits outweigh the costs. There are several benefits resulting from the use of asset management programs, either in the short-term or the long-term that have been outlined in various published papers. Generally, there are more longterm benefits than short-term, which poses difficulties for advocates of these programs because positive effects are not recognized early. The most prominent benefit from asset management programs is the ability to devise rational, datadriven, well-informed decision-making strategies when allocating resources or making investment-related decisions, as opposed to ill-informed decisions that cannot be justified. Justifying investment decisions is a critical aspect of agency accountability and transparency especially in relation to the public. For example, in Missouri, since the inclusion of asset data in financial reports resulting from the Governmental Accounting Standards Board (GASB) Statement 34, Missouri Department of Transportation’s (MoDOT’s) functional managers at all levels have began understanding the effects of investments on the condition of their roadways and bridges. Furthermore, MoDOT reports that the public can “see how the budget drives the outcome on net assets and other services provided increasing credibility of the agency to its customers Related to data use in decisionmaking, a second important benefit of asset management programs is the support they provide in helping agencies

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understand the implications of different investment options. In Missouri, the implementation of asset management provided the tools to determine how available (or constrained) funding can be used to improve asset condition, or assess the funding needs to attain a certain level of asset performance. Essentially, the program created the ability to determine the impact of various funding levels on infrastructure condition over the long-term. Where a management program is integrated with many different assets, consistent evaluation of the infrastructure condition as well as trade-off investments across different elements to determine the best investment at the appropriate time can be conducted. Clearly, this integrated approach to decision making especially pertaining to resource allocation means that agency investment decisions will be more efficient and cost-effective. With this level of informed decision making that integrates all the levels of infrastructure making up a transportation system, agencies can increase their effectiveness and efficiency in relation to infrastructure maintenance, repair and rehabilitation. In the long run, successful asset management programs should eventually lead to appropriate maintenance, repair and rehabilitation (MR&R) of infrastructure which improves asset performance while simultaneously reducing MR&R costs Overall, “more timely decisions and other efficiency improvements combine to reduce the costs of acquisition, maintenance, upgrade, and replacement of assets. These improvements in asset condition provide a better driving environment for users of the highway system, thus reducing user costs, vehicle operating costs and other external costs. Which are all important benefit-cost factors. Evidently, the benefits of ancillary transportation asset management programs and asset management programs in general, are many and varied and can be seen in both the short- and long-term. Nonetheless, implementing asset management as a standard business tool within transportation agencies still faces obstacles from an investment perspective. Generally, “upper-level managers are interested in benefits that can be translated into monetary values” (16 p. 232) which would help in convincing them of the importance of these programs. This comes as no surprise since money is a universal language easily understood by anyone from the common infrastructure user (the general public) to the highly technical engineers who develop these asset management programs. As a result, it is necessary to quantify the benefits of asset management program implementation.

V. QUANTIFYING THE BENEFITS OF ASSET MANAGEMENT The effort of quantifying the benefits of asset management, particularly when focused on ancillary assets, is primarily one of identifying the agency’s strategic objectives and performance measures, and assessing how formal management procedures for ancillary assets contribute to achieving these strategic objectives. A report by Amekudzi et al. showed the most common performance measures in state DOTs to be preservation, safety and mobility indicating that implicitly or explicitly most agencies’ strategic objectives include system preservation, safety and mobility. Various agencies may have additional strategic objectives and if they have adopted asset management as an agency-wide business process, apply asset management in achieving these objectives. Any evaluation of the benefits of asset management would thus be linked to the agency’s strategic goals – some of which can be quantified more readily than others. It is important to note here that the benefits of any asset management program are expected to be a function of the maturity of the program, and that programs tend to evolve in maturity over time. Table 3-6 shows the maturity scale for asset management programs presented in the AASHTO Transportation Asset Management Guide Volume2. This scale indicates that the results of analyses conducted to determine the benefits and costs of particular asset management programs should be interpreted carefully, because the inability to make a business case for a program at some point on the maturity scale does not serve as a basis to write off that program because this does not imply that it will be impossible to make a business case for that program when it is at a higher level of maturity. In particular, two important measures for the value being added by asset management systems ought to be the evolution of the benefits relative to the costs of the system and whether these benefit and cost measures are moving in the right direction. Using these measures in a time-sensitive manner may provide more valuable information for an asset management program in the long run as it continues to be intentionally developed to higher levels of maturity. Table 3-6 TAM Maturity Scale TAM Maturity Scale Level Initial Awakening

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Generalized Description No effective support from strategy, processes, or tools. There can be lack of motivation to improve. Recognition of a need, and basic data collection. There is often reliance on

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Structured

Proficient

Best Practice

heroic effort of individuals Shared understanding, motivation, and coordination. Development of processes and tools Expectations and accountability drawn from asset management strategy, processes, and tools. Asset management strategies, processes, and tools are routinely evaluated and improved.

VI. BENEFIT AND COST FACTORS Benefit and cost factors are those elements that can be quantified in order to measure improvements in asset performance and condition as a result of the operation of an asset management system. These outline the type of data that should be collected when a method of quantifying the benefits has been designed or selected. Cost factors are easier to determine or measure, than benefit factors, because there is some direct cost associated with asset management program development and implementation. Benefits are usually measured in terms of cost reduction, thus, relying on the same cost factors. These factors are typically grouped in three categories: agency costs, user costs and external costs. VII.

ASSET MANAGEMENT GUIDING PRINCIPLES Agency goals and policies for asset management provide guidelines for consistent evaluation of asset management systems. Furthermore, these goals establish a homogeneous understanding of the purpose of managing assets for decision makers and the general public. Four (25%) of the agencies responding to the asset management survey of practice indicated the existence of a program statement or some guiding principles. For some agencies, policies exist for some of the asset classes they manage. For others, while no formal statement exists; general goals are apparent and communicated throughout the agency. By and large, agency goals whether documented or not, center around optimizing operational efficiencies, maintaining assets at or above minimum levels of performance for their useful life and providing a basis for data-driven recommendations and decisions considering condition, performance, life-cycle costs, benefits and risk.

VIII.

RECOMMENDATIONS AND OPPORTUNITIES FOR IMPROVEMENT The over-arching goal of this research was to develop a simple and easily understood methodology for transportation agencies to be able to apply quickly and efficiently to estimate the relative benefits and costs of implementing formal asset management procedures for different classes of ancillary assets. Undoubtedly, the framework proposed here is one of many different options that could be attempted for the purpose of quantifying the benefits of ancillary transportation asset management. In order for this framework to be applied either retrospectively (after the management system is in place) or prospectively (in order to help prioritize assets for management), it is essential to be able to identify measures that can be attributed to specific assets. However, the transportation system is made up of components that work together, complementing each other to provide a service. Specific data needs or the specific data that needs to be collected cannot be recommended, because this should depend on the agency’s strategic objectives and performance measures. The measures shown in Figure4.4 should simply be a starting point for the use of this framework. Once the necessary data is obtained and the measures are monetized and put in present values, the present value of net benefits of each management system can be calculated by simple subtraction. As previously stated, interpreting the results of such an analysis should be done in the context of the maturity level of an asset management program. This study has revealed the importance of considering benefits and costs of asset management programs over an extended period of program maturation, rather than at a snapshot in time, in order to make sound decisions on the value of such programs. This finding emphasizes the importance of systematic data collection to track the evolution of benefits and costs of asset management programs. Whereas a determination of a benefit-cost ratio less than one for a program at a lower level of maturity should not create concern, a reducing benefitcost ratio as funds continue to be expended to increase the level of maturity of any program should raise a red flag, and cause the agency to ask critical questions about the nature of additional asset m management functions that would raise the value of their evolving program.

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FIGURE 4.4 Cost (left) and benefit (right) measures for proposed framework

IX. CONCLUSION This thesis has investigated the practice of ancillary transportation asset management in the United States. The literature review and survey revealed several important aspects of agency implementation of asset management practices over the past few years. Although some actions are driven by Federal mandates, most depend on the priorities and goals of state and municipal agencies. As a result, ancillary transportation asset management practices vary by agency, with some exceptions. No specific trends were observed in relation to the agencies or regions in the United States that seem to be making the most progress in the management of ancillary transportation assets. Findings also showed no specific trend in terms of jurisdictional size or the sizes of the inventories of assets that different agencies maintain. However, the agencies that manage a significant number (greater than 6) of the asset classes presented in this paper also seem to be further ahead in terms of data analysis and the use of data in informed decision making practices. These agencies and several others investigated seem to be developed past the general inventory stage, which is usually the first step in the creation of an asset management program. Overall, many agencies are working towards improved asset management programs for their ancillary assets and greater data and system integration to reduce redundancies and increase data sharing. The practices presented in this thesis are by no means exhaustive; however the results are indicative of growth in the field of transportation asset management towards informed, efficient capital investment and effective MR&R decisions based on limited resources. In comparison to the results of the literature review, findings from the survey present a more comprehensive and up-to-date synthesis of the data and data collection tools required in asset management systems. The

only exception is in the case of cost data, which is not readily available. In the long run, one of the ways an asset management system can be judged to be successful is in the cost savings associated with higher levels of performance for the same expenditures. The availability of the life cycle costs and benefit (including risk reduction) data of asset management systems themselves are important inputs for assessing the relative effectiveness of such systems. Because most ancillary transportation asset management systems are relatively new, data collection costs may be more easily estimated than the life cycle costs of these systems at their present stage of development, indicating that the results of such analyses should be interpreted as a function of the maturity level of the programs, and that the evolution of the benefits and costs of a particular asset management program would be a better indicator of its value than a snapshot benefit-cost number. The evaluated benefits of asset management systems are also a function of the extent to which decision support information is actually implemented (i.e., used in decision making). Finally, and most importantly, this work has evaluated the feasibility of quantifying the benefits of ancillary transportation asset management based on a review of previously proposed methods of quantification and a quantification framework based on a simple benefit-cost analysis procedure. As shown, the almost secondary nature of ancillary assets within the transportation system makes it difficult to attribute certain costs and reduction of those costs to the particular asset. In order to use this framework, agencies need to select cost-benefit factors and metrics that relate to their strategic objectives and for which data can be obtained (or predicted). In this paper, the author begin by presenting a hypothesis which states that developing an Asset Management orientation will always bring you to a higher level of business output and success. The premise of the argument presented is based on the graph shown in Figure 4.2 which defines three distinct zones of performance.

FIGURE 4.2 Asset Management Measurement Framework

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REFERENCES [1]. American Association of State Highway and Transportation Official s(AASHTO). AASHTO Subcommittee of Asset Management Strategic Plan 2011 - 2015. Federal Highway Administration (FHWA). [2]. Federal Highway Administration. Highway History. U.S. Department of Transportation Federal Highway Administration. [Online] FHWA, April 7, 2011.http://www.fhwa.dot.gov/infrastructure/50aasho.cfm. [3]. The Pavement-Serviceability-Performance Concept. Carey Jr, W. N. and Irick, P. E. Washington, D.C.: National Research Council, 1960, Highway Research Board Bulletin No. 250, pp. 40-58. [4]. Lindquist, Eric. Assessing Effectiveness Measures in the ISTEA Management Systems. Southwest Region University Transportation Center. College Station, TX : s.n., 1999. p. 103. SWUTC/99/467107-1. [5]. Davidson, James S. and Grimes, Thomas C. Culvert Management System Implementation and Seminar. University Transportation Center for Alabama. 2006. FHWA/CA/OR-. [6]. Federal Highway Authority (FHWA). New MUTCD Sign Retroreflectivity Requirements - Maintaining Traffic Sign Retroreflectivity. 2007. FHWA-SA-07-020. [7]. Federal Highway Administration (FHWA). Summary of the MUTCD Pavement Marking Retroreflectivity Standard. FHWA Safety. [Online] April 2010. http://safety.fhwa.dot.gov/roadway_dept/night_visib/fhwasa100 15/. FHWA-SA-10- 015.

[13]. Geiger, David, et al. Transportation Asset Management in Australia, Canada, England, and New Zealand. s.l. : Federal Highway Administration, 2005. FHWA-PL- 05-019. [14]. Haas, Karen and Hensing, David. Why Your Agency Should Consider Asset Management Systems for Roadway Safety. Office of Safety Research and Development, Federal Highway Administration. McLean, VA : s.n., 2005. p. 16, Primer. HRT05-077. [15]. The Benefits of Asset Management And GASB 34. Kraus, Deborah. 1, January 2004,Leadership and Management in Engineering, Vol. 4, pp. 17-18.

BIOGRAPHY

AIJAZ AHMED is M.Tech scholar in Transportation Engg.(Civil), from Jodhpur National University-Rajasthan, he completed his B.tech. from Same University with grade One.Delivered University Seminar on Intelligent Transportation System, Waste management and disposal, and Projects done during B.Tech are ; prepared Plan of College Hostel Building, Strengthening and Widening of road from Jhanwar Phanta to College of Engg.& technology-Jodhpur National University.

[8]. Markow, Michael J. Managing Selected Transportation Assets: Signals, Lighting Signs, Pavement Markings, Culverts, and Sidewalks. National Cooperative Highway Research Program. Washington, D.C. : Transportation Research Board, 2007. [9]. Li, Zongzhi and Madanu, Sunil K. A Methodology for Integrating Roadway Safety Hardware Management into the Overall Highway Asset Management Program. University of Wisconsin-Madison. Madison, WI: Midwest Regional University Transportation Center, 2008. MRUTC 08-06. [10]. Oracle. Oracle Press Release: City of Clearwater Implements Oracle(r) Utilities Work and Asset Management. Oracle | Hardware and Software, Engineered to Work Together. [Online] March 11, 2008. http://www.oracle.com/us/corporate/press/015747_EN. [11]. Najafi, Mohammad, et al. An Asset Management Approach for Drainage Infrastructure & Culverts. Midwest Regional University Transportation Center, University of Wisconsin Madison. Madison, WI : s.n., 2008. [12]. Hensing, David J. and Rowshan, Shahed. Roadway Safety Hardware Asset Management Systems Case Studies. Science Applications International Corporation (SAIC). McLean, VA : Federal Highway Administration (FHWA), 2005. FHWAHRT05-073.

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